Qualcomm (NASDAQ:QCOM) Trading 1.3% Higher – Here’s Why

Qualcomm Incorporated (NASDAQ:QCOM)’s share price shot up 1.3% during trading on Wednesday . The company traded as high as $180.86 and last traded at $176.40. 14,748,050 shares changed hands during trading, a decline of 5% from the average daily volume of 15,596,947 shares. The stock had previously closed at $174.09.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Amazon may purchase up to $60 billion of Qualcomm products and services through 2036. The agreement includes warrants for up to 25 million QCOM shares, with most vesting tied to AWS purchasing milestones, giving Qualcomm a high-profile hyperscaler customer and greater visibility into future demand. Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal
• Positive Sentiment: The partnership supports AWS’s effort to reduce AI-inference costs with energy-efficient custom silicon. Qualcomm will also supply optical connectivity technology capable of supporting high-bandwidth data-center networks, broadening the opportunity beyond processors. Initial revenue is expected in Qualcomm’s fiscal first quarter of 2027. Qualcomm Announces Multi-Generational Product Collaboration with Amazon
• Positive Sentiment: Investors and analysts view the deal as evidence that Qualcomm’s data-center strategy is becoming commercially credible, potentially diversifying the company from a slowing handset market. Rosenblatt Securities reaffirmed its Buy rating and set a $235 price target. Rosenblatt Securities Qualcomm price target
• Neutral Sentiment: Management continues to target $15 billion in annual data-center revenue by fiscal 2029, but investors will need to track product shipments and early revenue recognition beginning in fiscal 2027. Jim Cramer called the partnership significant while noting that execution milestones remain important. Cramer Says Qualcomm’s Amazon Collaboration Gives Stalled Stock Something Special to Point At
• Negative Sentiment: The warrants could eventually dilute existing shareholders by roughly 2.2%, and the $60 billion purchasing opportunity extends over a decade rather than immediately boosting quarterly results. Qualcomm also remains exposed to handset weakness and competition from established data-center chip suppliers.

Wall Street Analyst Weigh In

A number of research firms have issued reports on QCOM. Morgan Stanley reduced their price target on shares of Qualcomm from $231.00 to $220.00 and set an “equal weight” rating for the company in a research report on Thursday, July 30th. Bank of America raised their target price on shares of Qualcomm from $165.00 to $195.00 and gave the stock an “underperform” rating in a report on Tuesday, June 23rd. Guggenheim set a $200.00 price target on Qualcomm in a research report on Monday, June 22nd. HSBC reiterated a “hold” rating on shares of Qualcomm in a research note on Wednesday, July 15th. Finally, Dbs Bank raised Qualcomm to a “moderate buy” rating in a report on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twenty-one have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $204.45.

Qualcomm Stock Up 1.3%

The business’s 50 day moving average is $168.43 and its 200-day moving average is $170.26. The stock has a market cap of $185.26 billion, a price-to-earnings ratio of 20.42, a PEG ratio of 3.52 and a beta of 1.68. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm (NASDAQ:QCOM) last issued its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing analysts’ consensus estimates of $2.23 by ($0.02). Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The company had revenue of $9.95 billion during the quarter, compared to analysts’ expectations of $9.69 billion. During the same period in the prior year, the business posted $2.77 earnings per share. The company’s quarterly revenue was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, sell-side analysts predict that Qualcomm Incorporated will post 7.74 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is presently 42.59%.

Insiders Place Their Bets

In related news, CAO Patricia Y. Grech sold 625 shares of the business’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $162.85, for a total value of $101,781.25. Following the sale, the chief accounting officer owned 208 shares in the company, valued at approximately $33,872.80. The trade was a 75.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction dated Tuesday, July 14th. The stock was sold at an average price of $180.81, for a total value of $452,025.00. Following the transaction, the executive vice president directly owned 23,184 shares in the company, valued at approximately $4,191,899.04. The trade was a 9.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 11,533 shares of company stock valued at $1,961,219 over the last 90 days. 0.05% of the stock is owned by company insiders.

Institutional Trading of Qualcomm

A number of institutional investors and hedge funds have recently bought and sold shares of QCOM. California State Teachers Retirement System grew its holdings in shares of Qualcomm by 18,251.8% in the second quarter. California State Teachers Retirement System now owns 301,278,659 shares of the wireless technology company’s stock valued at $55,673,283,000 after purchasing an additional 299,636,973 shares in the last quarter. BlackRock Inc. acquired a new stake in Qualcomm during the 2nd quarter worth approximately $17,583,115,000. Geode Capital Management LLC boosted its position in Qualcomm by 12.5% in the 4th quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock valued at $4,931,968,000 after buying an additional 3,221,924 shares during the period. Van ECK Associates Corp boosted its position in Qualcomm by 22.7% in the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock valued at $3,178,872,000 after buying an additional 3,179,720 shares during the period. Finally, Wellington Management Group LLP grew its stake in shares of Qualcomm by 34.5% in the fourth quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company’s stock worth $2,861,301,000 after acquiring an additional 4,290,622 shares in the last quarter. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

About Qualcomm

Qualcomm Incorporated (NASDAQ: QCOM) is a technology company that develops wireless communications technologies, semiconductors and related intellectual property. Headquartered in San Diego, California, the company serves customers and partners worldwide across the mobile, automotive, consumer electronics and industrial markets.

Through its Qualcomm CDMA Technologies (QCT) business, Qualcomm designs and supplies integrated circuits, system software and hardware platforms. Its products include Snapdragon mobile platforms, 5G and other wireless modems, radio-frequency components, connectivity solutions, processors and artificial intelligence technologies.